OSSES of about $1,600,000 and of $12,000,000, as a result of the hostilities at Shanghai and the destruction of property at Tsingtao, were given by Mr. K. Kuroda, chairman, in the course of an extra-ordinary general meeting of the shareholders of the Shanghai Cotton Manufacturing Ca., Ltd., held at 185 Szechuen Road at 4 p.m. yesterday.
'The meeting was called to consider suspense. On or about December 18 the wholesale blasting and firing of änd, if approved, to pass a resolution to the effect "that the statement of all Japanese cotton mills, except Chinese workers' dwellings, was accounts of the company for twelve carried out with such force that al-months ending April 30, 1938, be pre-most all buildings and machinery sented at the general meeting of shareholders to be held during the were completely reduced to mere heaps of scrap and ashes. It came month of May, 1938, and that the to light later that this wanton des-appropriation of the balance of profit and loss account be then decided." truction was carried out by means of highly powerful explosives as The resolution was passed unanimwell as the spraying of heavy oil, ously by the meeting which consisted of 27 shareholders representing 159,- [apparently under an expert's supervision. Raw cotton, manufactured 880 shares (including proxies). Mr. goods, stores and furniture and even Kuroda was supported by Messrs. Y. staff's private belongings were all Noda and Y. Maeda, directors. In looted; our direct loss thus sustained reply to a question whether the Jap-amounts to the tremendous figure of anese Government had been peti-$12,000,000. tioned to compensate them for the Such an atrocious attack on private Josses sustained at Tsingtao, the property where no hostilities existed, chairman said that full details of all—for no single Japanese soldier was losses both in Shanghai and at Tsing-landed—has never been heard of in tao had been filed with the Japanese Government, who now had the whole the annals of history. question under their consideration.
With the landing of Japanese forces later, a number of our staff were The chairman said:—It has been our usual custom to allowed to proceed to the mill pre" convene general meetings twice a mises and are now engaged in works ear in the months of May and of rehabilitation in the face of con-november but, as you are all aware, siderable personal inconvenience and during last November the local situa-hardship. In this connection I have tion then prevailing did not permit the very sad duty to announce that the holding of such a meeting: in two of our Japanese staff were taken Addition to this, the fate of your away by rebels on February 19 and Tsingtao Mills was then very obscure nothing has since been heard of their we could not then examine the whereabouts although every possible state of affairs in that city. Under attempt to rescue them was made. Such circumstances it was impossible As there is now not the faintest hope for your directors and auditors to of their safe return our deepest sym-examine your properties and. make a pathy goes to their bereaved families, proper report, ŝo that tt was' useless to close the accounts and submit them Repairs to Buildings to the shareholders, I am sure that (a) Shanghai:—Repairs of damaged you will readily understand our buildings are now almost completed difficulties under such extraordinary but arrivals of certain machinery and circumstances, accessories which were ordered in Your company has sustained tre-Tnendous losses as a result of the place of those damaged are anxiously awaited and they are expected at any recent hostilities and 1 will later try moment, to describe them in detail, To at-In view of the fact that your mills tempt to cover your properties by ate situated in different quarters in-war risk insurance was to our great stead of being concentrated in one regret quite futile as no insurance compound we were able to start company would accept such risks, particularly in view of their recent operations before our other competi-experiences in connection with the tors had done so, although on a Spanish conflict, somewhat haphazard scale. At Concerning the indemnity for represent all-of your mills are running their plants and the number of work-parations, the Japanese authorities ere giving us most sympathetic coners employed are now well over sideration and fail details of our 5,500 against 8,500 in pre-war times, losses, both direct and indirect, are but they are daily increasing owing already in their hands but, as a state to the rejoining of former employees of war still exists, this question must In order to raise the efficiency of naturally be deferred until after the newly recruited members who at conclusion of peace. present predominate in number many expert instructors were engaged from Damage Sustained Japan and it is expected that norm-Now I will try to give you a short ally of your Shanghai mills will be Bummary of the damage sustained:—restored before long.
(a) Shanghei Mils:—On Friday (b) Tsingtao: x—As stated before, afternoon, August 13, the outbreak the destruction of property was so of minor hostilities in the northern thoroughly done that it is almost area of this city was first reported beyond imagination; the work of and compelled us to close down the those in charge of rehabilitation is whole of our mills, On the next very hazardous and many difficulties day, August 14, No. 2 and No. 3 mills have to be faced. Fortunately your were made the target of an attack by new No. 2 Mill -and its auxiliary Chinese airmen and asthe' result of buildings were in course of construc-bombing and Machine-gun firing at tion and, as they were not completed close range a portion of our weaving when the act of destruction took mill was totally demolished.
I believe that this was the first place, the blasting operations resulted occasion on which air raids were ever in only comparatively minor damage. As most of the machinery for this resorted to in local fighting and it should be recorded that the offensive mill had been kept back in Japan, it is intended to proceed as a first step was first taken by Chinese airmen as no Japanese bombing planes were to erect mills with 44,000 spindles and then in use. At the time of this 800 looms, all of which are expected to be in action before the end of this attacks there were hundreds of women and children (the families of year. our -staff) sheltered in our office (c) Tientsin:—Disturbances in that building, with over 2,000 working port having been short-lived, practi-women assembled before the pay cally no damage was done to your office awaiting their wages and it was property but procedure with building nothing short of miraculous that they operations was entirely held up until escaped without loss of life, recently, mainly due to the non-Daily visits of Chinese aeroplanes arrival of materials, then continued and, as the tension Confidence Restored of the situation increased, all women and children were evacuated to In the months of May and June Japan, leaving the male members of 1937 we enjoyed a period of excep-the staff at their posts in their retional prosperity and recorded un spective mills, However, in the precedented results but since Jul afternoon of August 17 an evacuation with the increase of tension in the order -was issued by the authorities situation, business fell off gradually and our staff had no alternative but and by the time of the outbreak of to accept and proceed to prescribed quarters, leaving your property Tou business was entirely stopped. locked up, With the restoration of security we With restoration of confidence early were allowed to return to our war-thi is year, our stocks had found their torn district on August 25 and your ual outlet and, as your mills are mills were once again occupied by now again in motion, I anticipate cur staff, Although they had thus that there will be no more losses to returned to the mills the dangers of be shown in our monthly accounts, night raids and bombardment by provided no untoward incident should heavy guns remained unceasingly and happen in the future. on the evening of September 18 an The term under review, having aerial attack was made on No. 2 taken place under extraordinary: Spinning Mills, scattering the whole cumstances, and the condition of your of the roofing and the ring frames Tsingtao mill being then not only therein installed. A few hours later Obscure, but extremely precarious, it in the same night another attack was was not possible to close the accounts made to the No. 1 Mill which com-for presentation to shareholders; but, pletely wrecked our godown by the as we are now placed in a better vse of incendiary bombs, thus causing position to examine fully the extent the loss of expensive woollen goods of damage and whatever salvage can stored therein. be gained out of the wreckage, it is More Damage anticipated that we should be able Further òn October 14 concentra-to ascertain the exact figures before tion of gun fire of heavier calibre the end of next month. These are was directed on No. 5 mill, and des-the reasons why we are now asking troyed part of the godown and raw your sanction to postpone submission cotton stored there. On October 21, of the statement of accounts and your another attack was made on No. 4 decision as to the appropriation of mill and a number of incendiary the balance of profit and loss account bombs were sprayed on the premises, until the next ordinary general meet-though the extent of damage was ing to be held during the month of comparatively slight, as by this time May next. our staff had got accustomed to deal with such attacks, During these three months almost all your mills and auxiliary buildings were constantly subjected to bombardments, either from air or land, in fact, according to our records no Jess than eight powerful bombs and over fifty shells of heavy calibre were detonated on our premises, missiles of smaller size being quite uncountable, The total amount of direct loss thus sustained is about $1,600,000. It was, however, very fortunate that no casualties of a serious nature occurred in this part of your plant.
Text read from the printed page and cleaned; old type leaves the occasional error.